Ashford ACC 310 Week 3 Quiz Answers (2018)

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Ashford ACC 310 Week 3 Quiz Answers (2018)

Ashford ACC 310 Week 3 Quiz Answers (2018)

Question 11 pts

Smelly Perfume Company manufactures and distributes several different products. They currently use a plant-wide allocation method for allocating overhead at a rate of $7 per direct labor hour. Cindy is the department manager of Department C which produces Products J and P. Diane is the department manager of Department D which manufactures Product X. The product costs (per case of 24 bottles) and other information are as follows:
 

 

 

Products

 

 

J

P

X

 

 

 

 

Direct materials

$100.00

$ 72.00

$48.00

Direct labor

42.00

31.50

12.00

Overhead

28.00

21.00

14.00

 

$170.00

$124.50

$74.00

 

 

 

 

Machine hours

4

2

3

Number of cases (per year)

300

500

600


 
If Smelly changes its allocation basis to machine hours, what is the total product cost per case for Product P?

Question 21 pts

Service firms use similar job costing procedures as manufacturing companies. However, a few slight differences exist. Which of the following is not a difference between job costing for service firms and job costing for manufacturing companies?

Question 31 pts

Which of the following statements is (are) true?
(A). Activity-based costs per unit are greater than volume-based costs per unit.
(B). Volume-based costing has typically resulted in lower gross margins for high volume products and higher gross margins for low volume products.

Question 41 pts

Companies using activity-based costing (ABC) have learned that costs are a function of

Question 51 pts

If a company multiplies its predetermined overhead rate by the actual activity level of its allocation base, it is using

Question 61 pts

Which of the following statements regarding first-in, first-out (FIFO) process costing is/are true?
(A) First-in, first-out (FIFO) process costing transfers out the costs in beginning inventory before transferring out the costs associated with units started and completed.
(B) First-in, first-out process costing requires one additional step in assigning costs to the units transferred out and the ending Work-in-Process Inventory.

Question 71 pts

Additional materials are added in the second department of a four-department production process. However, this addition does not increase the number of units being produced in the second department, but will

Question 81 pts

For which of the following businesses would the job order cost system be appropriate?

Question 91 pts

Which of the following statements is (are) true regarding product costing?
(A) Twenty cans of paint that are 25% full are equivalent to four cans of paint that are completely full.
(B) The equivalent unit concept refers to the actual amount of work during the period stated in terms of whole units.

Question 101 pts

Which of the following statements is true?